Single Entry Bookkeeping System
Single Entry Bookkeeping System
Single Entry Bookkeeping System
OR INCOMPLETE RECORDS
Double Entry Bookkeeping System
1. There are three fundamental accounting values which are in accounted for in
bookkeeping – assets, liabilities and owner’s equity.
2. Business transactions are activities or events which cause certain changes in the
three accounting values.
3. All business transactions and events have a two –fold effect on accounting
values.
Incomplete Records
1. Books of accounts of the business entity are kept by a trained accountant but as
a result of a calamity some of the records or books are destroyed.
1
Preparation of a Statement of Assets and Liabilities
1. Draw up a list of all assets and have their values determined based on the
available documents or by appraisal.
a. Cash in bank may be determined from a bank statement.
b. Cash on hand may be determined by counting.
c. Receivables may be determined from the ledgers or uncollected sales
invoices.
d. Merchandise or supplies may be determined by conducting a physical
count.
e. Property assets may be determined by inspection and appraisal.
May 2009
2
REVIEW QUESTIONS
Single Entry Bookkeeping System or Incomplete Records
4. What are the usual books maintained under the single entry system? Briefly
describe each.
10. How is the income statement prepared under the single entry system?
May 2009